Appeals court finds CFPB funding mechanism unconstitutional
The 5th U.S. Circuit Court of Appeals found the Consumer Financial Protection Bureau’s (CFPB) funding mechanism is unconstitutional Wednesday. CUNA has long supported placing the CFPB under the traditional appropriations process.
The three-judge panel found placing the bureau’s funding outside of the process violates the U.S. Constitution’s structural separation of powers.
“The court’s decision today is consistent with CUNA’s longstanding position that CFPB funding go through the standard appropriations process,” said CUNA President/CEO Jim Nussle. “It’s been clear this is the most appropriate avenue since the very start of the CFPB, as it would provide addition Congressional oversight and incentivize the bureau to focus its attention on bad actors causing real harm to consumers.”